NEAR City Layout

    How centralized or decentralized is NEAR, really?

    Question:

    How centralized or decentralized is NEAR, really?

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    Choose at least two distinct measures of decentralization that can be explored with on-chain data; clearly define those metrics; and outline how NEAR performs based on those metrics.

    In your view, is NEAR becoming more centralized or decentralized over time?

    You are welcome to draw on any past submissions in your work, but ensure you credit and link to the original creator (bonus points if you shout them out on Twitter).

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    ==Introduction and explanation==

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    Difference Between Centralization and Decentralization

    Centralization and Decentralization are the two types of structures, that can be found in the organization, government, management and even in purchasing. Centralization of authority means the power of planning and decision making are exclusively in the hands of top management. It alludes to the concentration of all the powers at the apex level.

    On the other hand, Decentralization refers to the dissemination of powers by the top management to the middle or low-level management. It is the delegation of authority, at all the levels of management.

    To determine whether an organization is centralized or decentralized greatly depends on the location of decision-making authority and the degree of decision-making power at lower levels. There is a never ending debate between these two terms to prove which one is better. In this article, significant differences between Centralization and Decentralization, in an organization is explained.

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    What Is Near Protocol and How Does It Work?

    Near Protocol is a layer 1 blockchain network. It provides a platform on which developers can build decentralized applications (dapps). The most successful layer 1 blockchain is Ethereum, so protocols like Near are seen as challengers.

    The key yardsticks for layer 1 networks are transaction costs, speed and the ability to maintain those features as transaction volumes grow. These factors are the focus for layer 1s like Near to improve upon Ethereum, which has encountered issues with costs and speed over the last few years.

    Near Protocol is faster and cheaper than Ethereum. More importantly, it promises to be faster than some of the other largest challengers. When fully implemented, Near is expected to be able to process up to around 100,000 transactions per second (TPS). Ethereum’s largest rival, Solana, averages less than 3,000 transactions per second, according to its own blockchain explorer. Ethereum averages double-digit transactions per second. Bitcoin does less than 10.

    Outside the crypto sphere, an important comparison is Visa’s (V) capacity. The global payments giant processes around 7,000-8,000 TPS, based on its claim of 232.5 billion transactions over a 12-month period. Near Protocol could eclipse that, though it has not yet realized its theoretical potential as of July 2022.

    “Near has built technology to enable transactions that are fast (~1 second), quick to finality (~1-2 seconds), cheap (less than a penny), and secure,” crypto research firm Messari noted in March 2022.

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    Charts and explanations;

    By viewing the chart of Number of Eth Vs Near pools and traders, we realize that;

    • The number of pools and traders in Eth network is more than Near.
    • The number of traders in both networks is more than the number of polls.

    The number of unique trader (Eth Vs near) chart that has been examined for each month shows;

    • The trend of Eth network traders is upward until Dec 2021 and after that a sudden decrease occurs.
    • The highest number of traders in the Eth network is 37.89k in Dec 2021.
    • Traders in near network started their activity from September 2021 and there is a downward trend.
    • The highest number of traders in near network is 18.135k in Oct 2021.

    The number of unique pools (Eth Vs near) chart has been reviewed monthly By checking the chart, we understand;

    • The number of pools in the Eth network is almost going through an upward trend.
    • The highest number of pools in Eth network is 12.706 k in Jun 2021.
    • The number of pools in the near network has started from September 2021.
    • The highest number of near network pools is 221 in Jul 2022.
    • The number of new traders chart trend (Eth Vs near) is similar to the number of unique traders chart trend.
    • The highest number of new traders in the Eth network is 28.938 k in Dec 2021.
    • The highest number of new traders in the near network is 13.183 k in Oct 2021.
    • In September 2021, the number of new traders of the near network is more than the Eth network.
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    • In the number of new pools (Eth vs near) chart, the difference between the ceilings and floors is large. The highest number of new pools in Eth network is 4610 in Jul 2021.
    • The lowest number of new pools in the Eth network is 1 in April 2020.
    • The highest number of new pools in the near network is 86 in Apr 2022.
    • The lowest number of new polls in the near network is 1 in Nov 2022.
    • As we can see in the above chart, Ethereum has more number of unique first and second swap token pairs than near.
    • The number of unique traders in Ethereum is 106.869 k and in the near network is 96, which is a big difference between these two amounts.
    • The difference between the first and second tokens in the eth network is large, while the difference between these two tokens in the near network is 1.
    • Since swap in DEX is one of the determining parameters of the network And it determines which network moves towards decentralization, in this context, according to the investigated parameter, NEAR must do a lot of work to move towards decentralization.
    • According to the chart above, we can see that the trend of the Total swap chart in Eth is increasing until May 2021, and after that the trend is decreasing.
    • The highest swap in Eth is 7.393453M in May 2021.
    • Swap in the near network started from Sep 2021 with a amount of 144.734 k and reached 310.466 k in Oct 2021, which is the highest amount in this network.
    • The lowest swap amount in the near network is on November 2022, and the swap amount on this day is 7851.
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    How centralized or decentralized is NEAR really? As we can see, due to the high level of risk, the NEAR market is not very concentrated at the moment.

    As with other information available in this dashboard, due to the number, number, and amount of unique shareholders and participants, we can see that the NEAR market is becoming highly decentralized over time, so it's hard to see a reversal in the downward trend. It observed. Osmosis is gaining a high stock-to-stock ratio, which indicates the concentrated trend of this market.